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Mybudget
Aussies hit with unexpected expenses over the holidays
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By Mybudget editor

Many Australians have experienced the sting of surprise costs during the festive period. It can be difficult to deal with, but there is always a way to sort out your finances and get rid of debt.

A survey of over a 1,000 Australians found that one in four faced unexpected expenses over the holidays - the most common cost that was reported by 26% of all respondents were car, home and appliance repairs. Other unpleasant surprises came from unbudgeted social events and meals (21%), gifts (16%), medical and veterinary bills (14%), and transport and accommodation (12%).

Losing track of your money

Over the years, MyBudget Director Tammy Barton has seen how people tend to forget that everyday expenses still occur during the holiday period. “We see people using up their savings to enjoy the festive season, but forgetting to keep reserves for those unpredictable costs that can occur any time of the year,” says Tammy.

The research found that almost a quarter of us lose track of how much we spend during the holidays - the average spend across the country is a whopping $1,194. Younger adults in the 18-29 age bracket most commonly spent between $400-$500, which jumps to $900-$2,000 for 30-49 year olds, and drops back down to $400-$500 when over 50 years old.

Adding to debt

Another recent report by SocietyOne found that a majority of Aussies covered unexpected expenses by borrowing money from family and friends, or adding the debt to their home loan. The report also stated that over 25% of people would fund these surprise costs with extra credit card debt.

According to Tammy, many slip up because they don’t have a plan for their money. “It’s amazing how much more people save when they have a budget,” she says. Financial fitness starts with having a plan and setting small goals. That means that when times are tight, burying your head in the sand is never a good strategy.

Tammy’s top 5 tips to pay off unexpected debt:

• Stay positive.

• Create a budget.

• Set small goals to start.

• Open a separate account for savings.

• Establish positive daily money habits.

Need a little more help to get in control of you money? Enquire today to get a free personalised budget and live your life free from money worries!

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